Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Income Taxes, Managerial Accounting, Uncategorized, Video Updates.

According to Slate, last year, Congress authorized the Internal Revenue Service to use private debt collectors to go after unpaid tax liabilities—and this month, if you are one of the unfortunate, you may have already had the pleasure first-hand.

1. What is the pleasure that this article is referring to?
2. Has this been done before? When and what happened?
3. What percentage will collectors keep and how should both parties account for this percentage? Give journal entries, if possible.

Chodorow, A. (2017). The IRS is using Private Debt collectors again. And it may not end well.